IMF Forecasts Resilient Growth For Bosnia's Economy In 2025

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 4. Bosnia and Herzegovina's economy has shown resilient growth despite domestic and global challenges, according to the latest Article IV Consultation completed by the International Monetary Fund (IMF), Trend reports citing the IMF's latest reports.

The IMF projects GDP growth at 2.4 percent in 2025, slightly below 2024's 2.5 percent, with a potential return to 3 percent by 2027, driven by consumption and exports. Inflation is forecast to rise to 3.8 percent this year due to higher imported food prices before stabilizing at 2 percent over the medium term. The current account deficit is expected to widen to 4.1 percent of GDP, while gross international reserves remain robust at 9 billion euros, covering nearly seven months of imports.

The IMF notes that elevated political risks, trade tensions, weaker external demand, and potential policy slippages ahead of the 2026 elections pose significant downside risks. On the positive side, progress in EU accession could boost investor confidence and growth.

The IMF Executive Board emphasized the need for medium-term fiscal consolidation, stronger public spending efficiency, and safeguarding the independence of the central bank to preserve the credibility of the currency board arrangement. Directors also highlighted the importance of structural reforms, including energy sector modernization, labor market improvements, digitalization, anti-corruption measures, and effective implementation of MONEYVAL priority actions.

The IMF underlined that advancing reforms under the EU Growth Plan will be critical for accelerating convergence with the EU and securing sustainable economic growth for Bosnia and Herzegovina.

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